Europe announces unprecedented $840 billion rearmament plan to tackle ‘grave' threats, sending defense giants BAE and Thales soaring

(Back row left to-right): Swedish Prime Minister Ulf Kristersson, German Chancellor Olaf Scholz, Norway’s Prime Minister Jonas Gahr Store, Czech Republic’s Prime Minister Petr Fiala; (Middle row left to right) Denmark's Prime Minister Mette Frederiksen, European Commission President Ursula von der Leyen, European Council President Antonio Costa, Canada's Prime Minister Justin Trudeau, Italy's Prime Minister Giorgia Meloni; (Front row left to right) France's President Emmanuel Macron, Britain's Prime Minister Keir Starmer, Ukraine's President Volodymyr Zelensky, and Poland's Prime Minister Donald Tusk. (Credit: Justin Tallis - WPA Pool/Getty Images)

Europe laid down the gauntlet as it unveiled a defense plan that could free up €800 billion ($840 billion) to rearm the continent amid the most significant shock to Western international relations in decades.

European Commission President Ursula von der Leyen announced on Tuesday a “ReArm” plan to stock up Europe’s defenses against a looming threat from Russia as the U.S. walks back its military support of Ukraine.